CEASA REVIEW 

For the Special Interest of Marketing & Media Executive

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August 2007

The Australian Marketing Institute presents its 2007 Annual Conference: ‘Marketing’s New Life’

CEASA is pleased to support the Australian Marketing Institute’s 2007 Annual Conference: ‘Marketing’s New Life’. 

This conference brings together leading business thinkers and marketing practitioners to examine the challenges and opportunities that marketers now face.

Much is changing in the world of marketing. The old orthodoxies are being questioned; traditions of 50 years of media practice are being stealthily challenged by new media, media fragmentation and consumers who are hard to reach and harder to convince. There is also much greater emphasis now on accountability and performance measurement.

Marketing’s New Life features 4 International Keynote Speakers as well as inspiring presentations from: NAB, Nestle, McDonald's, Prada, Sony, Acer Computer, Brown-Forman Beverages, News Limited and AFL.

The conference, which also incorporates the Awards for Marketing Excellence, will be held over 3 days at the Hilton Sydney from 17-19 October 2007. For further information on the conference program, visit www.ami.org.au/2007AC or phone: 1300 737 445

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June 2007

There has been a great deal written about the probable effects of new media on traditional media. Certainly as outlined in the figures below, online has moved strongly from a low base to be the fourth largest medium in 2006 of Print, Television, Radio, Outdoor and Cinema. This has been achieved in just a few years.

On the other hand, the main media mentioned above are also continuing to increase their share but at a slower rate than online. It is difficult to assess just how much online and other new media are affecting traditional media. It would seem that there is the probability that online is enjoying a degree of new money.

CEASA DATA

Variations - Advertising Expenditure in Main Media

Classified Directories actually went up. The apparent decline .was due to a gap in reporting within Sensis Pty Ltd.

The word we are getting is that the majority of advertisers are still evaluating the likely usefulness of new media such as mobile phones, structured word of mouth etc. etc.

We believe that, at present, advertisers have two sets of opportunities in addressing consumers. These are Marketing and Advertising Media and Marketing Categories. For the record we would place them thus:

Inevitably there will be mergers.

The reserve Bank’s recent statement on monetary policy is of considerable interest against a background of concern as to how long the stock market will keep rising.

In Reserve Bank speak from its May Bulletin "The Australian economy has performed strongly in the recent period, with favourable outcomes being recorded on several fronts. Output growth has picked up and this has been accompanied by continued strength in incomes and falling unemployment. At the same time, despite high levels of capacity utilization and tight labour market conditions, there has been some moderation in underlying inflation."

*There is continued strength in the global economy.

*The global economy can be expected to be above average again.

*The US economy is now in a period of more moderate growth, with activity being dampened by a downturn in the housing sector.

*In other parts of the world conditions have generally remained strong.

*China’s rapid growth has continued.

*The Euro area is now recording its fastest growth for some time.

*The Japanese expansion is proceeding at a good pace.

*Growth in other parts of east Asia have seems to have eased recently.

*In Australia, growth continues to be driven mainly by domestic demand.

*The consumer spending is supported by growth in employment and real wages, rising household wealth and a high level of consumer confidence.

*Wages at the end of 2006 were growing at a rate that was at the top end of the range that was seen over recent years, though they did not appear to be accelerating further.

* Despite the general strength in demand and activity, the evidence from producer and consumer price indices is that inflation has moderated recently.

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May 2007

Brain Scan – The End Of Focus Groups ?

A report in the Sun-Herald May 6 suggested that work has started in America on using a skull cap loaded with sensors or an MRI scan to determine a respondents real reaction to a new product or new commercial.

"People being studied are asked to watch commercials or view new products and, as their brains process the stimuli, researchers analyse changes in brainwave activity. A decrease in alpha waves and a corresponding increase in beta and theta waves indicate the person being studied is paying close attention to the stimuli, suggesting a successful commercial, advertisement or new product.

The MRI produces a cross-section image of the brain of each participant which shows which areas were stimulated at the time they were shown the commercial etc."

Surprise, surprise!  Australia is already leading the world in this development. It began with Channel 9 Insights Unit who worked with Latrobe University to develop, firstly, brain scans which would indicate reactions to programming. The person concerned was Mr Peter Pynta who has now moved to Neuro-Insights Pty Ltd, in Melbourne. They are moving to commercialise the system for reactions to commercials, new products and programming. The system can go beyond television to Radio and, no doubt other media. Steve Allen, Managing Director, Fusion Strategy commented that he is sold on the system, regarding it as valuable, fascinating, leading edge work.

Focus Groups ? Steve believes that the new system will not affect their use.

In discussion with Peter Pynta he had this to say. "The benefits and short-comings of focus groups are now well documented. High quality research will always have a market. However, the big challenge is understanding the emotional dimension.

A consumer’s connection with a TVC, a brand or a TV programme is very difficult, if not impossible to accurately verbalise. Maximising marketing and advertising effectiveness is strongly linked to the emotional dimension.

The Neuro-Insight approach, whilst capturing all the usual rational consumer responses, importantly provides us with a direct, unfiltered insight into the emotional response. These insights must then lead to actionable outcomes for a client.

Most of our work to date has been directed at high-value client solutions…which is probably why it attracts the perception of a high price tag. In reality, on some projects, we’ve found our costs can be comparable to running a series of focus groups.

In terms of turn-around times – obviously, the time needed to complete projects varies considerably. It’s not unrealistic to have results, on say an ad test, turn around within a week if critical decisions have to be made.

We recently released our annual survey of advertising expenditure in all Print Media; Television; Radio; Online; Outdoor and Cinema. Brief results were:

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of Australia 1997-2007